Revenue and Profit Growth
Over the five-year period ending March 2025, Tega Inds. has seen its net sales rise from ₹805.52 crores in March 2021 to ₹1,638.65 crores in March 2025, effectively doubling its top line. This growth trend is indicative of strong demand for its products and successful market expansion strategies. Operating profit before depreciation and interest (PBDIT) excluding other income also increased from ₹187.48 crores in March 2021 to ₹339.81 crores in March 2025, reflecting improved operational efficiency despite rising raw material and employee costs.
The company’s consolidated net profit followed a similar upward trajectory, climbing from ₹136.41 crores in March 2021 to ₹200.12 crores in March 2025. Earnings per share (EPS) correspondingly improved from ₹23.68 to ₹30.08 over the same period, signalling enhanced shareholder value. However, profit margins have experienced some compression, with the PAT margin declining from 16.93% in March 2021 to 12.21% in March 2025, partly due to increased expenditure and depreciation charges.
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Cost Structure and Margins
Tega Inds.’ cost of raw materials has increased in line with sales, rising from ₹328.24 crores in March 2021 to ₹717.72 crores in March 2025. Employee costs have also grown steadily, reflecting workforce expansion and wage inflation. Despite these cost pressures, the company has maintained a relatively stable operating profit margin, which stood at 20.74% in March 2025, only slightly down from 23.27% in March 2021. This suggests effective cost management and pricing power in its sector.
Depreciation expenses have notably increased, more than doubling from ₹40.18 crores in March 2021 to ₹101.33 crores in March 2025, indicating significant capital investments in fixed assets. Interest costs have fluctuated but remained manageable, with ₹26.90 crores reported in March 2025.
Balance Sheet Strength and Asset Growth
The company’s total assets have expanded substantially, from ₹992.71 crores in March 2021 to ₹2,058.32 crores in March 2025. Shareholder’s funds have more than doubled, reaching ₹1,396.69 crores in the latest fiscal year, supported by rising reserves and retained earnings. Book value per share has improved from ₹105.04 to ₹209.92, reflecting the company’s growing net worth.
Long-term borrowings have decreased from ₹86.21 crores in March 2021 to ₹99.06 crores in March 2025, after peaking in earlier years, while short-term borrowings have increased moderately. The company’s net block of fixed assets has nearly doubled, signalling ongoing capital expenditure to support growth.
Cash Flow and Liquidity
Operating cash flow has shown resilience, with ₹195 crores generated in March 2025, despite some volatility in prior years. Investing activities have consistently reflected capital outflows, aligned with asset expansion. Financing cash flows have varied, with repayments and borrowings balancing out over time. The closing cash and cash equivalents have increased to ₹114 crores in March 2025, up from ₹47 crores in March 2021, indicating improved liquidity.
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Summary of Historical Performance
In summary, Tega Inds. has exhibited strong historical performance characterised by robust revenue growth, expanding profitability, and a strengthening balance sheet. The company’s ability to increase sales and net profit consistently over five years highlights its competitive positioning and operational effectiveness. While margins have seen some pressure due to rising costs and depreciation, the overall financial health remains solid, supported by growing shareholder equity and healthy cash flows.
Investors may note the company’s ongoing capital investments and moderate leverage, which suggest a focus on long-term growth. The steady improvement in earnings per share and book value per share further reinforce the company’s value creation over time. However, margin compression and increased depreciation warrant monitoring as the company continues to scale.
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